As the New York Times recently reported, the interest rate spread for banks is twice the level it was in 2007. This can be great for banks, as it creates an environment for higher profits. But, as Anand points out, REITS sit downstream from banks, so if banks spreads are increasing, then REITS are decreasing. It's a zero sum game that right now seems tipped in the banks favor. This has implications for popular REITS like ﻿American Capital Agency﻿ (NAS: AGNC) and ﻿Annaly Capital﻿ (NYS: NLY)